This futures trading company earns a 58% profit margin. Located in Eastern Nebraska with 700 active clients across 30 states, 80% of contracts are grain or livestock based. Outside of these, futures trading comes from other traditional markets like currency, oil, precious metals and more. In business for over 25 years, the seller is looking to retire and will be leaving behind an additional book of 1,200 inactive clients for a new owner to take on and grow the company.
A buyer looking to broker would need to obtain a Series 3 license administered by FINRA. The test is a straightforward 2 1/2-hour, multiple choice exam to secure a license. This can be achieved during the Due Diligence time period after an offer to purchase the business has been made, and can be taken in testing centers across Nebraska. A buyer not looking to broker would need to hire additional brokers to assist the 2 employed brokers currently working.
This is an excellent chance for a sales professional to break into a lucrative field with obtainable licensing, or for a larger commodities firm to acquire a second location. Sales are stead year-over-year, and an ambitious broker could drive sells well over the $2M mark.
6,200 sq. ft. – plenty of room for more brokers!
Eastern Nebraska with clients across 30 states
700 active with an additional 1,200 inactive on the books; most clients are farmers & ranchers
Develop relationships with 1,200 inactive clients
2 employed brokers, 2 contracted brokers
Support & Training:
• 1st year at 16 hours/week
• 2nd & 3rd years at 8 hours/week
Purchase Price: $3,800,000
45% Up Front: $1,710,000
Of the 45% up front, a buyer could pay just 35% down ($598,500) and finance the rest through a bank loan.
55% Seller Earn Out: $2,090,000
Based on retention and a guaranteed net of $750,000 to the buyer: to be paid back over 3 years on a quarterly basis.